Vol. 430 No. 5
59 Mr. Yates asked the Minister for Finance if he has any proposals to attract savings back into this country which are currently held by Irish residents in off-shore accounts; if any studies have been carried out as to the level of such investment; and if he will make a statement on the matter.
In last year's Finance Act, I introduced special savings accounts, which are deposit accounts with banks and building societies, the interest from which is taxed at 10 per cent with no further tax liability on that interest. These accounts are designed to be broadly competitive with the alternative of bank accounts abroad. In addition, the same Finance Act makes the 27 per cent deposit interest retention tax, DIRT, deducted from the interest on other bank accounts, the taxpayer's final liability to income tax on that interest income. Similar 10 and 27 per cent tax regimes have been announced for the life assurance and unit trust industries, and the legislation for these regimes will be in this year's Finance Act.
I am not aware of any formal studies in relation to the level of Irish residents' holding of savings abroad.
